Indiana Gov. Mike Braun credits "common-sense" Medicaid reforms with producing hundreds of millions in savings by targeting fraud and inefficiency. A Wall Street Journal report estimates Minnesota’s fraud losses since 2018 could exceed $9 billion, prompting Gov. Tim Walz to order a third-party audit and temporarily pause payments and 14 programs. Braun argues states can act faster than the federal government to tighten oversight and recover misspent funds.
Indiana Touts Hundreds of Millions in Medicaid Savings as Minnesota Confronts $9B Fraud Probe
Then-Sen. Mike Braun, a Republican from Indiana, speaks during the Conservative Political Action Conference (CPAC) in National Harbor, Maryland, U.S., on Thursday, March 2, 2023. (left); Tim Walz speaks onstage during the 2025 SXSW Conference and Festival at the Austin Convention Center on March 8, 2025, in Austin, Texas. (right)
Indiana’s recent Medicaid reforms have drawn national attention as a sharp contrast to an ongoing fraud investigation in Minnesota. Republican Gov. Mike Braun says his state has identified and eliminated wasteful practices that produced hundreds of millions of dollars in savings, while Minnesota grapples with allegations of widespread misuse of taxpayer-funded programs.
How Indiana Says It Cut Costs
Braun described several areas where Indiana officials say they found improper payments and inefficiencies: beneficiaries who should be on Medicare but remained on Medicaid, beneficiaries receiving duplicate benefits across states, and problematic practices in pharmacies related to the 340B drug-discount program.
"We're just picking that low-hanging fruit, and that's why we're going to lead the country," Braun said, adding that states can apply businesslike oversight to run programs more efficiently.
Minnesota's Response to Fraud Allegations
Minnesota is facing intense scrutiny after a Wall Street Journal report estimated that fraud losses in the state since 2018 could exceed $9 billion. The report described schemes in which operators allegedly set up sham companies and submitted false claims to siphon funds.
Minnesota locations accused of fraudulent claims were investigated by Fox News Digital, uncovering vacant lots and non-existent suites.
Democratic Gov. Tim Walz has acknowledged the problem and ordered a third-party audit of Medicaid billing through Minnesota’s Department of Human Services. His administration has temporarily paused payments for some services and said it has "pumped the brakes" on 14 programs while investigators review billing and oversight practices.
"We cannot effectively deliver programs and services if they don’t have the backing of the public’s trust," Walz said. "If you attempt to defraud our public programs and steal taxpayer dollars out from under the people who need them most—you will be stopped, and you will be held accountable."
Broader Debate: State Action Versus Federal Oversight
Braun argued that while waste and abuse exist at every level of government, states that act decisively can fix problems more quickly than waiting for federal action. He pointed to oversight work he said he participated in as a senator and claimed federal payment errors historically reached 2%–3% in some programs.
Officials and investigators in both states say audits and strengthened controls are necessary to restore public trust and ensure funds reach intended beneficiaries. Minnesota’s audit and payment pauses aim to identify vulnerabilities and implement corrective measures, while Indiana highlights its early results as an example other states might follow.
What Happens Next: Minnesota’s third-party audit is ongoing. Investigators and state officials will review billing practices, pursue cases of alleged criminal activity where warranted, and recommend policy changes to prevent future abuse. Indiana says it will continue review and enforcement to preserve Medicaid resources.
